Magnum Hunter Shuts In Kentucky Wells
Magnum Hunter Resources has shut in 1.7 million cubic feet per day (MMcf/d) of production from 400 natural gas wells in Kentucky due in part to low natural gas prices.
The company said Wednesday it shut in production at the beginning of this year's third quarter after determining production would be uneconomical due to low gas prices and the cost of blending stock to reduce ethane content for transportation purposes.
Magnum Hunter's production in its Appalachian operations was "significantly impacted" in late June and early July due to a thunderstorm in the area that knocked out power, the company said in a statement.
The company started bringing production back online when power was restored in early August. However, production remains substantially curtailed due to lack of available processing capacity at Dominion Transmission's Hastings processing facility.
Magnum Hunter estimates that 9.5 MMcf/d of its production is being curtailed, and won't come back online until mid-November, when MarkWest's Mobley processing facility becomes operational.
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